This course introduces the concept of Stress Loss Estimation within the Credit Monitoring & Portfolio Surveillance framework. It focuses on assessing potential losses under stressed scenarios to identify vulnerabilities and quantify risk exposure under adverse conditions.
Learners will explore key assessment dimensions such as control lapses, early warning signal identification, risk trend analysis, and proactive portfolio risk management, with an emphasis on independent validation and well-documented rationale. The course also distinguishes stress loss estimation from broader portfolio diversification strategies, highlighting its specific role in evaluating exposure-level risks and potential losses during stress events.
By the end of the course, participants will understand how to apply stress loss estimation in practice, particularly within Stress Testing and Scenario Analysis, including validation of team-level analysis, approval of case recommendations, management of segment-level exposure, and escalation to the credit committee where required.